My husband is about to lose his job. We have been living in the Napa Wine Country for four years and are very well connected with many people (potential marketers and/or buyers/clients). We are interested in starting a home-based biz. Can you give us some resources and perhaps the most important points to consider while we are still in the “planning and development” stages?
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Jay’s Answer: If you’re planning on starting a new business:
The what: While you’re thinking of what new business to start (and especially if you haven’t started a business before), start with what you know well. No doubt, you and your husband have a lot of interests and skills. You may have a crafty touch. An artistic eye. An programming wizardry. A way with people. Confidence in public speaking. A love of pets. It doesn’t matter what your “gift” is – the key is to first identify the things you love (and ideally, what people have told you that you’re a “natural” at).
The who: Once you know what your general area is, now focus on who specifically would be interested. Local retirees? College-aged women? Veterans? People online who have poor vision? The more specifically you identify your target market, the (ironically) easier it is to find them and have them find you.
The how: What problem does your target market have? Parents too busy to cook healthy food? Adults worried about their older parents? Losing weight? Make sure that the people in your target market would be willing to pay for the solution to their problem.
The why: Unless you’re extremely lucky, there is already companies solving the problem you identified. No doubt you’d do things differently. Buy why is your solution better than anything else out there? Why should they trust you? What special skills do you have?
Alternatively, you might consider buying a business and/or franchise. In this case, the issues of the target market, the message, etc. are already thought out (and presumably tested). The upside is that it’s a quicker ramp-up, with lots of support (either previous owners or franchisee). The downside is that you’ll need a bit of cash to purchase the business.
No matter what route you take, you’ll need patience, which means you’ll need a source of revenue until your company is in full-gear. Consider taking a part-time job to relieve any financial concerns. You don’t want to start your new business in full-stress mode.
Don’t forget to talk to your local SCORE and/or SBA counselors. They both provide lots of great support for new businesses for free.